Page 43 - Housing Solutions Annual Report

The process for identifying, evaluating and Risk Committee has received the Chief Executive’s
managing the significant risks faced by the Group annual review of the effectiveness of the system of
is ongoing and has been in place throughout the internal control for the Group, and the annual report
period commencing 1 April 2019 up to the date of of the internal auditor, and has reported its findings
approval of the report and financial statements. to the Board.

Key elements of the control framework include: NHF CODE OF GOVERNANCE AND HOMES
ENGLAND GOVERNANCE AND FINANCIAL
• Board approved terms of reference and delegated VIABILITY STANDARD
authorities for Audit & Risk, Funding, Nominations
and Remuneration Committees, The Group monitors its on-going compliance with
both the economic and consumer Regulatory
• clearly defined management responsibilities for the standards and compliance is reported to the Board
identification, evaluation and control of significant on an annual basis with any changes or implications
risks; arising within the year being reported on an ad hoc
basis.
• regular system reviews by appointed internal
auditors, RSM and a detailed audit tracking system Having considered the requirements of the
which is reviewed and monitored by the Audit & Regulator for Social Housing regulatory framework,
Risk Committee; following review by the Board we are pleased to
report that the Group complies with the principal
• robust strategic and business planning processes, recommendations of the NHF Code of Governance
with detailed financial budgets and forecasts; (revised 2015) and with the Governance and
Financial Viability Standard.
• formal recruitment, retention, training and
development policies for all staff; established The Group’s business activities, its current financial
authorisation and appraisal procedures for position and factors likely to affect its future
significant new initiatives and commitments; development are set out within this Operating and
Financial Review. The Group has in place long-term
• approved Financial Regulations and Treasury debt facilities which provide adequate resources
Management Policies and a sophisticated to finance committed investment and development
approach to treasury management, which is programmes. The Group also has a long-term
subject to external review each year;
business plan which shows that it is able to service
• regular reporting to the appropriate committee on these debt facilities whilst continuing to comply with
key business objectives, targets and outcomes; lenders’ covenants.
• Board approved whistleblowing and corruption GOING CONCERN
policies; The Board has a reasonable expectation that the
Group has adequate resources to continue in
• Board approved anti-fraud, theft and bribery operational existence for the foreseeable future,
policies, addressing prevention, detection and being a period of twelve months after the date
reporting, of financial malpractice; on which the report and financial statements are

• regular monitoring of loan covenants and signed. For this reason, it continues to adopt the
requirements for new loan facilities; and going concern basis in the financial statements.

• annual review of compliance with NHF Code of The Board has considered the effects of Covid-19
Governance and at least 3 yearly review of policies and Brexit and is confident the Group can withstand
and procedures. significant economic volatility.

A fraud and bribery register is maintained and is The strategic report was approved by the Board on
reviewed annually by the Audit & Risk Committee. 23 September 2020 and signed on its behalf by:
During the year there were no reports of actual or
suspected frauds.

The Board cannot delegate ultimate responsibility
for the system of internal control but has delegated
authority to the Audit & Risk Committee to regularly
review the effectiveness of the system of internal ELIZABETH J PADMORE
control. CHAIRMAN
The Board receives regular reports and meeting
minutes from the Audit Committee. The Audit &

Annual Report and Accounts 2020 43

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